Outsourcing downtown's improvement

Express-News Editorial Board

Updated 4:56 pm, Thursday, September 12, 2013

Photo: File Photo, San Antonio Express-News

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An Amigos "ambassador" gives directions to a visitor on the River Walk. The role of the Public Improvement District that funds the ambassadors has been expanded to include downtown marketing and business recruitment. less

An Amigos "ambassador" gives directions to a visitor on the River Walk. The role of the Public Improvement District that funds the ambassadors has been expanded to include downtown marketing and business ... more

Photo: File Photo, San Antonio Express-News

Outsourcing downtown's improvement

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Quietly, with little attention, City Council expanded the scope and mission of the downtown public improvement district.

It happened the same day the council approved the nondiscrimination ordinance, tucked away on the consent agenda.

In some ways, the vote on the public improvement district was a routine matter. It has existed since 1999, and has been renewed in 2004 and 2009.

The PID, as it is known, taxes downtown businesses, and then uses those funds to improve the area. It has traditionally funded cleanup, graffiti removal, landscaping and “ambassadors” to assist tourists.

This 10-year extension formalized those responsibilities, but it also expands the PID's scope to include marketing and business attraction and retention. The PID's annual budget is about $4 million.

Of that, $600,000 has been allocated for marketing and business recruitment and retention, respectively. But there are no benchmarks or clear objectives. Consider the bullet points assigned to business retention and recruitment in city documents:

“Develop and implement a business retention and recruitment plan and campaign detailing the existing businesses located within the District and opportunities for new business locations within the District.”

“Provide funding for the hire of an individual or consultant services to administer implementation of the program.”

The PID is also undergoing a restructuring.

Former Deputy City Manager Pat DiGiovanni will serve as CEO of Centro Public Improvement District, the corporation tasked with managing the PID.

Because of its unique structure, the PID has managed to bifurcate along public and private lines.

Its board will meet twice a year, in August and February. Only the August meeting, which is advisory to the city, has to be public, DiGiovanni said. The February meeting is merely an update, although DiGiovanni said it may also be public for greater transparency.

But this public-private split is perhaps best shown in salaries. Assessments through the PID will fund $500,000 in compensation for six staff members. DiGiovanni said his salary, which has yet to be disclosed, will be covered by “other sources that are not paid in the PID assessment.” This could be membership fees, private contracts or events.

DiGiovanni described the PID as a supplement to existing city services. There is no group dedicated to marketing downtown, or attracting businesses. The PID expansion may be good for downtown.

But there was a disturbing lack of public discussion from City Hall about the PID, the length of its extension, or its evolving mission and structure.

After all, every San Antonio resident has a stake in downtown's revival.